By Dwayne Klassen, Commodity News Service Canada Inc.

Winnipeg – April 9/12 – Canola contracts on the ICE Futures Canada trading platform finished Monday’s session with advances. Much of the strength was associated with steady commercial demand, believed to be covering both domestic processor needs as well as old export business to Japan, market watchers said.

Strength in CBOT soyoil futures and the downswing in the value of the Canadian dollar also encouraged some of the price advances.

The penetration of technical resistance in the November future at C$582.00 also stimulated some additional buying in that contract, brokers said.

The buying back of previously sold positions ahead of the release of supply/demand reports from the USDA Tuesday morning also influenced some of the strength displayed by canola.

Early weakness in canola had been linked to the liquidation of positions by speculative accounts. Some of that selling was believed to have been profit-taking, traders said. Elevator company hedge selling, prompted by an increase in farmer deliveries of canola during the long holiday weekend, also encouraged some of the early price weakness in the commodity.

The hedging by elevator companies, however, slowed by the close, allowing values to edge higher, brokers said.

The improved soil moisture situation across the Canadian prairies helped to temper some of the upward price action. Continued talk of record large canola acreage this spring in western Canada also restricted some of the price gains.

There were an estimated 23,777 canola contracts traded Monday, down from the 31,216 contracts that changed hands during the previous session. Of the contracts traded, 17,228 were spread related.

There were no western barley or new barley contracts traded during the session.

No milling wheat or durum contracts were traded during the session but values were adjusted upwards arbitrarily by ICE Canada at the close.

Prices are in Canadian dollars per metric ton.